How Long Is a Cashier’s Check Good For?

A cashier’s check is a secure payment method, used for substantial transactions like real estate down payments or vehicle purchases. Its funds are guaranteed by the issuing financial institution, not an individual’s account. This provides payment certainty.

Defining a Cashier’s Check

A cashier’s check is a unique form of payment guaranteed by the issuing bank. Unlike a personal check, it is drawn directly on the bank’s own funds, not an individual’s account. The bank verifies and sets aside the money at the time of issuance, ensuring its availability for the payee. A bank official signs the check, often with security features like watermarks, making it a reliable payment instrument.

Validity Period for Cashier’s Checks

Cashier’s checks do not have a federal expiration date, meaning the funds technically never expire. However, banks typically consider them “stale-dated” after a certain period, commonly ranging from 90 days to one year. While a stale-dated check is not invalid, its age may prompt the bank to conduct additional verification steps before cashing or depositing it. This extra scrutiny ensures the check has not already been paid or that no fraud is involved, which can cause delays.

If a cashier’s check remains uncashed for an extended period, it becomes subject to state escheatment laws. These laws require financial institutions to turn over unclaimed funds to the respective state as unclaimed property. The dormancy period for escheatment varies by state, but it typically ranges from three to five years. Once escheated, the original owner or payee can still claim the funds from the state’s unclaimed property division.

Cashing and Depositing a Cashier’s Check

Cashing or depositing a cashier’s check typically requires identification. Valid government-issued photo identification, such as a driver’s license, passport, or state-issued ID, is required. The check must be endorsed by the payee.

Depositing a cashier’s check into an account at any bank is an option, though cashing it at the issuing bank may be the fastest method. Even though cashier’s checks are bank-guaranteed, banks may place a hold on deposited funds, especially for large amounts or if the deposit is made into a new account. Federal regulations permit banks to hold funds for a “reasonable period,” which can be up to two business days for checks from the same bank, and up to seven business days for checks from a different bank.

Addressing Uncashed or Lost Checks

If a cashier’s check is never cashed, the funds eventually fall under state escheatment laws. The issuing bank transfers these unclaimed funds to the state’s unclaimed property division after the specified dormancy period. The original payee can then initiate a claim with the state to recover the funds.

If a cashier’s check is lost or stolen, the purchaser or payee should immediately contact the issuing bank. The bank will typically require a “declaration of loss” statement. For reissuance, especially for checks exceeding a certain amount, the bank may require an indemnity agreement or surety bond. This bond protects the bank from financial loss if the original check is later presented and paid. A waiting period, often around 90 days, may be required before a replacement check or refund is issued, unless an indemnity bond is provided to waive this waiting period.